Honda Motor (7267) Corporate Presentation summary

About Honda

• Maintains a strong financial base with net cash of 3.8 trillion yen and total capital of 13.0 trillion yen as of March 2024.

• Employs nearly 195,000 associates globally and operates 75 product assembly sites.

• Holds over 39,000 patents and invests heavily in R&D, with approx. 5 trillion yen allocated to electrification and software through 2031.

• Achieved global sales of 2.67 million units in FY2024, with motorcycles as the largest segment.

• Ranked 5th in global automotive brand value in 2023, valued at $24.4 billion.

Improvement of earnings structure

• Achieved historical high operating profit of 1,381.9 billion yen in FY2024, driven by improved auto profitability and strong motorcycle business.

• Enhanced auto business earnings by optimizing production, consolidating plants, and reducing R&D steps and model complexity.

• Motorcycle business maintains global leadership, supplying about 19 million units and holding top market shares in key regions.

• Improved break-even point for automobiles by 30% since FY2019, reflecting higher efficiency.

• Profitability in motorcycles reached 17.3% operating margin in FY2024, with balanced global profit structure.

Medium-term growth strategy

• Targets 40% EV/FCEV sales ratio in automobiles by 2030, aiming for 100% by 2040; motorcycles to reach 15% EV ratio by 2030.

• Launching the Honda 0 Series EVs globally from 2026, with seven models planned by 2030.

• Pursues a unique electrification strategy with vertically integrated battery value chains and alliances with major partners.

• Aims to reduce EV battery production cost by 20% and production cost by 35% by 2030 through innovation and dedicated EV plants.

• Expanding electric motorcycle lineup to 30 models by 2030, leveraging modular platforms for efficiency.